New investors take note: it may be time to take your profits
One of the rather surprising trends since the COVID-19 lockdown has been the new wave of first-time share market investors. Many have enjoyed huge gains since the March market rout – often by speculating on highly risky businesses. But the ensuing dislocation between share prices and economic reality tells me that some could get their fingers badly burnt.
The combination of lockdowns, government handouts and a lack of sporting events has resulted in the emergence of a wave of debutante stock market speculators. And for many, if not all, it is highly likely they have never invested or traded through a recession.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Sergey Golovin
:
https://www.bloombergquint.com/business/india-s-app-ban-threatens-china-s-rise-as-a-global-tech-power
Grant Mack
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Hi Roger
Thank you for your insights .
Having followed your commentary for some time I find it hard to recall your view being as pointed as has you have expressed in your article.
To take advantage of the buying opportunities that accompany an (anticipated) broader market drop, have you increased your various funds cash positions?
Regards
Grant
Roger Montgomery
:
We are adopting a number of strategies to reduce risk. Cash is one of the tools we use Grant.